Logo image of SHLS

SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis

NASDAQ:SHLS - US82489W1071 - Common Stock

6.59 USD
+0.09 (+1.38%)
Last: 8/28/2025, 8:00:02 PM
6.56 USD
-0.03 (-0.46%)
After Hours: 8/28/2025, 8:00:02 PM
Fundamental Rating

6

Taking everything into account, SHLS scores 6 out of 10 in our fundamental rating. SHLS was compared to 93 industry peers in the Electrical Equipment industry. SHLS has an excellent financial health rating, but there are some minor concerns on its profitability. SHLS has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

1. Profitability

1.1 Basic Checks

SHLS had positive earnings in the past year.
In the past year SHLS had a positive cash flow from operations.
In the past 5 years SHLS has always been profitable.
Of the past 5 years SHLS 4 years had a positive operating cash flow.
SHLS Yearly Net Income VS EBIT VS OCF VS FCFSHLS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

1.2 Ratios

The Return On Assets of SHLS (2.66%) is better than 77.42% of its industry peers.
SHLS has a Return On Equity of 3.67%. This is in the better half of the industry: SHLS outperforms 70.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.09%, SHLS is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHLS is below the industry average of 10.00%.
Industry RankSector Rank
ROA 2.66%
ROE 3.67%
ROIC 4.09%
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
SHLS Yearly ROA, ROE, ROICSHLS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

1.3 Margins

SHLS's Profit Margin of 5.28% is fine compared to the rest of the industry. SHLS outperforms 79.57% of its industry peers.
SHLS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.32%, SHLS is doing good in the industry, outperforming 79.57% of the companies in the same industry.
In the last couple of years the Operating Margin of SHLS has declined.
SHLS has a Gross Margin of 33.70%. This is in the better half of the industry: SHLS outperforms 75.27% of its industry peers.
In the last couple of years the Gross Margin of SHLS has grown nicely.
Industry RankSector Rank
OM 10.32%
PM (TTM) 5.28%
GM 33.7%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
SHLS Yearly Profit, Operating, Gross MarginsSHLS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

More info and screens

7

2. Health

2.1 Basic Checks

SHLS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHLS has less shares outstanding
SHLS has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHLS has an improved debt to assets ratio.
SHLS Yearly Shares OutstandingSHLS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SHLS Yearly Total Debt VS Total AssetsSHLS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 4.05 indicates that SHLS is not in any danger for bankruptcy at the moment.
SHLS has a better Altman-Z score (4.05) than 77.42% of its industry peers.
The Debt to FCF ratio of SHLS is 10.90, which is on the high side as it means it would take SHLS, 10.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.90, SHLS is in the better half of the industry, outperforming 68.82% of the companies in the same industry.
SHLS has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
SHLS has a better Debt to Equity ratio (0.23) than 61.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 10.9
Altman-Z 4.05
ROIC/WACC0.47
WACC8.66%
SHLS Yearly LT Debt VS Equity VS FCFSHLS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

SHLS has a Current Ratio of 2.34. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
SHLS has a Current ratio of 2.34. This is in the better half of the industry: SHLS outperforms 66.67% of its industry peers.
A Quick Ratio of 1.64 indicates that SHLS should not have too much problems paying its short term obligations.
SHLS has a better Quick ratio (1.64) than 63.44% of its industry peers.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 1.64
SHLS Yearly Current Assets VS Current LiabilitesSHLS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

More info and screens

5

3. Growth

3.1 Past

The earnings per share for SHLS have decreased strongly by -40.82% in the last year.
SHLS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.95% yearly.
SHLS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.95%.
SHLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.54% yearly.
EPS 1Y (TTM)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%

3.2 Future

Based on estimates for the next years, SHLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.97% on average per year.
SHLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.63% yearly.
EPS Next Y21.88%
EPS Next 2Y21.57%
EPS Next 3Y18.38%
EPS Next 5Y14.97%
Revenue Next Year16.85%
Revenue Next 2Y15.16%
Revenue Next 3Y13.01%
Revenue Next 5Y11.63%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
SHLS Yearly Revenue VS EstimatesSHLS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M
SHLS Yearly EPS VS EstimatesSHLS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0.2 0.4 0.6

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.72, SHLS is valued on the expensive side.
SHLS's Price/Earnings ratio is rather cheap when compared to the industry. SHLS is cheaper than 82.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. SHLS is around the same levels.
The Price/Forward Earnings ratio is 13.51, which indicates a correct valuation of SHLS.
89.25% of the companies in the same industry are more expensive than SHLS, based on the Price/Forward Earnings ratio.
SHLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.78.
Industry RankSector Rank
PE 22.72
Fwd PE 13.51
SHLS Price Earnings VS Forward Price EarningsSHLS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SHLS is valued a bit cheaper than 74.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SHLS is valued a bit cheaper than the industry average as 68.82% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 91.25
EV/EBITDA 22.62
SHLS Per share dataSHLS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SHLS may justify a higher PE ratio.
SHLS's earnings are expected to grow with 18.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y21.57%
EPS Next 3Y18.38%

More info and screens

0

5. Dividend

5.1 Amount

SHLS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

SHOALS TECHNOLOGIES GROUP -A

NASDAQ:SHLS (8/28/2025, 8:00:02 PM)

After market: 6.56 -0.03 (-0.46%)

6.59

+0.09 (+1.38%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)08-05 2025-08-05/bmo
Earnings (Next)11-10 2025-11-10/amc
Inst Owners117.86%
Inst Owner Change6.75%
Ins Owners0.81%
Ins Owner Change4.96%
Market Cap1.10B
Analysts78.46
Price Target7.33 (11.23%)
Short Float %12.63%
Short Ratio3.75
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.47%
Min EPS beat(2)-23.86%
Max EPS beat(2)18.92%
EPS beat(4)1
Avg EPS beat(4)-10.95%
Min EPS beat(4)-23.86%
Max EPS beat(4)18.92%
EPS beat(8)4
Avg EPS beat(8)-1.9%
EPS beat(12)8
Avg EPS beat(12)10.2%
EPS beat(16)11
Avg EPS beat(16)4.34%
Revenue beat(2)2
Avg Revenue beat(2)5%
Min Revenue beat(2)3.87%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)1.47%
Max Revenue beat(4)6.14%
Revenue beat(8)5
Avg Revenue beat(8)1.19%
Revenue beat(12)9
Avg Revenue beat(12)2.72%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)8.66%
PT rev (3m)17.37%
EPS NQ rev (1m)8.4%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)8.55%
EPS NY rev (3m)8.07%
Revenue NQ rev (1m)9.15%
Revenue NQ rev (3m)8.45%
Revenue NY rev (1m)5.71%
Revenue NY rev (3m)5.81%
Valuation
Industry RankSector Rank
PE 22.72
Fwd PE 13.51
P/S 2.75
P/FCF 91.25
P/OCF 35.1
P/B 1.92
P/tB 2.36
EV/EBITDA 22.62
EPS(TTM)0.29
EY4.4%
EPS(NY)0.49
Fwd EY7.4%
FCF(TTM)0.07
FCFY1.1%
OCF(TTM)0.19
OCFY2.85%
SpS2.39
BVpS3.44
TBVpS2.8
PEG (NY)1.04
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.66%
ROE 3.67%
ROCE 5.79%
ROIC 4.09%
ROICexc 4.12%
ROICexgc 4.85%
OM 10.32%
PM (TTM) 5.28%
GM 33.7%
FCFM 3.02%
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexcg growth 3Y-14.52%
ROICexcg growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score7
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 10.9
Debt/EBITDA 2.42
Cap/Depr 147.99%
Cap/Sales 4.83%
Interest Coverage 4.14
Cash Conversion 57.78%
Profit Quality 57.21%
Current Ratio 2.34
Quick Ratio 1.64
Altman-Z 4.05
F-Score7
WACC8.66%
ROIC/WACC0.47
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
EPS Next Y21.88%
EPS Next 2Y21.57%
EPS Next 3Y18.38%
EPS Next 5Y14.97%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
Revenue Next Year16.85%
Revenue Next 2Y15.16%
Revenue Next 3Y13.01%
Revenue Next 5Y11.63%
EBIT growth 1Y-19.67%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year78.1%
EBIT Next 3Y34.66%
EBIT Next 5Y24%
FCF growth 1Y-84.63%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y-62.6%
OCF growth 3YN/A
OCF growth 5Y17.31%